cathmom Posted May 25, 2009 Share Posted May 25, 2009 Just something I have been pondering. I don't need personal details, just things like, "Mortgage paid off, 6 months expenses in bank" - or whatever you think. Quote Link to comment Share on other sites More sharing options...
LaxMom Posted May 25, 2009 Share Posted May 25, 2009 For me, it would mean being debt free and a good amount of liquid assets in case we did have to live without income for a period... what a "good amount" is, I have no idea. We're still working on the "debt free" part. :001_smile: Quote Link to comment Share on other sites More sharing options...
brehon Posted May 25, 2009 Share Posted May 25, 2009 Debt free (ideally including mortgage) w/at least 1 year's worth of expenses in the bank. Right now I'm working on the debt free part. Quote Link to comment Share on other sites More sharing options...
BalanceSeeker Posted May 25, 2009 Share Posted May 25, 2009 For me, it's no debt at all, including the house. Having the house paid off is probably not possible for us for many, many years, but we're working on it. Quote Link to comment Share on other sites More sharing options...
Closeacademy Posted May 25, 2009 Share Posted May 25, 2009 On the lowest level--able to pay all the bills each month, take a good vacation once a year and be able to afford a meal out once in a while. This is comfortable. On the highest level--at least 6 months expenses, all debts paid off, and no mortgage and plenty of extra money after the bills are paid each month. :001_smile: Quote Link to comment Share on other sites More sharing options...
LMA Posted May 25, 2009 Share Posted May 25, 2009 This is what I consider to be financially secure: savings for emergency expenses and fun stuff, investments that are doing well for back up funds, and retirement accounts are well funded. You are on target for hitting your retirement goals and aiming for a certain rate of growth each year for savings. Even if there is debt, you can manage the debt, such as a mortgage. Louise Quote Link to comment Share on other sites More sharing options...
Murphy101 Posted May 25, 2009 Share Posted May 25, 2009 On the lowest level--able to pay all the bills each month, take a good vacation once a year and be able to afford a meal out once in a while. This is comfortable. this my minimum view too. altho what we consdier a "good vacation" is probably not a vacation at all to most folks. to me, this is not secure per se, but it is stable for the time On the highest level--at least 6 months expenses, all debts paid off, and no mortgage and plenty of extra money after the bills are paid each month. highest view for me too. We are currently in the mid-level. we will have a mortgage for some years yet and there's not much extra funds, certainly no savings. But very shortly we will have no debt other than utilities and mortgage. Unfortunately we will have no extra funds then either due to greatly reduced income with dh's lay off coming. Quote Link to comment Share on other sites More sharing options...
Marylou Posted May 25, 2009 Share Posted May 25, 2009 www.crownmoneymap.org Quote Link to comment Share on other sites More sharing options...
mcconnellboys Posted May 25, 2009 Share Posted May 25, 2009 No mortgage; no car notes; and even if you run a line of credit, enough money invested to pay it off if you wanted to, still leaving enough to live on into retirement, help out your children, etc. Quote Link to comment Share on other sites More sharing options...
Renee in NC Posted May 25, 2009 Share Posted May 25, 2009 Financially secure.....hmmmm. I would be happy with no debt, health insurance, food, enough money for a roof of some sort (not picky about this and we will probably not own again anytime soon), and 6 months expenses in the bank. My level of acceptable has changed dramatically in the past year and the past 6 months particularly. Quote Link to comment Share on other sites More sharing options...
nutmeg Posted May 25, 2009 Share Posted May 25, 2009 Dave Ramsey step 7: No debt, no mortgage, 6 months expenses in the bank, retirement and college savings ongoing. Quote Link to comment Share on other sites More sharing options...
OrganicAnn Posted May 25, 2009 Share Posted May 25, 2009 I'll be happy when the mortgage is equal to our emergency saving account which is currently about 9 months of income, but we are trying to get it up to 12 to 16 months of savings. I figure at that point we could always use savings to continue to pay and also refinancing to lower monthly payments if absolutely needed. Ultimate freedom would of course be mortgage is paid off. We've never had credit card or car loans. After seeing my MIL struggle with paying for medicine on a fixed income, I would think I'm starting to consider that we need both good insurance and backup savings for potential healthcare costs in retirement. We have retirement/college funds set up, but I never feel confident that we have the right amount/right investment mix for them. Quote Link to comment Share on other sites More sharing options...
kalanamak Posted May 25, 2009 Share Posted May 25, 2009 For me it is enough to retire on. Not there, yet. If I had a more employable spouse, I'd say at least one of us in decent health and the other in excellent health, at least one of us with a secure job we could live on, plus able to save and put away for retirement nearly every month. That would be financially secure. Quote Link to comment Share on other sites More sharing options...
sunflowerlady Posted May 25, 2009 Share Posted May 25, 2009 I would feel secure if we had a savings account with a couple of thousand dollars in it for emergencies. Don't know when or if that will happen anytime, soon though. Even with some debt, I would feel secure if I had an emergency fund. Quote Link to comment Share on other sites More sharing options...
elise1mds Posted May 25, 2009 Share Posted May 25, 2009 Only debt being mortgage, retirement and college investments ongoing, and plenty of money in the bank... very close to the Dave Ramsey step 7 mentioned above. Quote Link to comment Share on other sites More sharing options...
HSMom2One Posted May 26, 2009 Share Posted May 26, 2009 and wanting to be wise with finances. This is to be commended, but I also have to add that frankly, I don't think there is such a thing as being financially secure this side of Heaven. I have found through my own life experience that what we work so hard to acquire in order to hopefully fall back on one day can easily be gone in a very short amount of time - due to circumstances beyond our control. Even a wise and prudent man can be completely wiped out in a short amount of time. I try to keep the big picture in mind of what my faith tells me and where the wisdom I pray for leads. My faith in Christ is the greatest security of all. Blessings, Lucinda Quote Link to comment Share on other sites More sharing options...
Peela Posted May 26, 2009 Share Posted May 26, 2009 I don't think there is such a thing. Nor is there such a thing as security in anything, and if you try and get security through money, you will never be secure. However, you can be sensible about money, and not spend more than you earn, and put some aside for a rainy day, and retirement, and do all the other things people suggest here...we have health and life insurance, some savings, some investment properties (not paid off but kind of paying for themselves), but we rent because we choose lifestyle over financial "security". I don't deny its important to plan and be sensible about money...but honestly, if there was a war in your country, if someone close to you died, if a fire wiped out your town...security means nothing. Things get put back in perspective. In other words, I don't believe its worth working 60 hour weeks, or stressing, or living in such a way that security in the future is the goal. I don't think we are here to do that, or that that is a life well spent. Quote Link to comment Share on other sites More sharing options...
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